When a woman was told by her clinic that she was no longer covered by her medical insurance, she learned the hard way how insurance can be pulled right out from under someone after a divorce. This is because many couples continue to rely on one spouse's insurance benefits, typically provided by an employer.

In some cases, it is possible for families to continue with the same insurance policy after a divorce, with the ex-spouse remaining a dependent on the policy holder's account. However, this may become a trap for the unsuspecting, if, like in this case, the policyholder allows the insurance policy to lapse.

This couple had been divorced for seven years. The woman and their two children remained as dependents on her ex-husbands insurance policy. He took a leave of absence from work, and during that time failed to make premium payments, resulting in a lapse of coverage. When he returned to work, he reinstated coverage for himself and his children, but not his ex-wife.

Unfortunately, the ex-husband, his employer and the insurance company all failed to notify the woman that she would no longer be covered under his insurance policy. She continued to assume that she was covered, and incurred medical expenses during this time.

So who is responsible for these medical expenses? Unless the employer or the insurance company can be found to have violated the law by failing to notify her that she was dropped, they will not be responsible.

What about the ex-husband? This will depend on their divorce settlement agreement and his financial obligations towards his ex-wife concerning insurance and medical costs.

In the meantime, the woman has been able to procure her own medical insurance through her employer. By making her story public, however, she hopes that divorced couples who share an insurance policy can avoid a similar situation.

Source: Star Tribune, "Whistleblower: Surprise! Your insurance lapsed," Jan. 28, 2012